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Paramount Sues Warner Bros. Discovery Over Netflix Deal, Sets Up Proxy Fight

The Delaware case seeks detailed valuations plus debt terms so WBD investors can judge Paramount’s $30-per-share cash bid against the Netflix transaction.

Overview

  • Paramount filed in Delaware’s Court of Chancery to compel Warner Bros. Discovery to disclose financial details of its agreement with Netflix, including valuations, debt purchase‑price adjustments, and the basis for a stated risk adjustment to Paramount’s offer.
  • David Ellison said Paramount will launch a proxy contest and nominate directors who, consistent with fiduciary duties, would exercise WBD’s rights under the Netflix agreement to engage with Paramount and pursue a transaction.
  • Paramount plans to propose a bylaw change requiring WBD shareholder approval for any separation of the Global Networks business before the 2026 annual meeting.
  • WBD’s board continues to recommend rejecting the $30‑per‑share cash bid and is advancing the Netflix deal to sell the studios and streaming operations for cash and Netflix stock, with cable channels to be spun into a public company called Discovery Global.
  • Netflix says it is in talks with U.S. and EU regulators and has guided to a potential 12–18 month closing window, while WBD has questioned Paramount’s financing and conditions and major shareholders remain split.